WTO Sets Panel in China Autos Case, Sends Boeing Subsidy Case for Arbitration
The World Trade Organization Dispute Settlement Body (DSB) established a panel to decide the U.S. challenge of Chinese antidumping and countervailing duties on U.S. automobiles, in an Oct. 23 meeting. China said it regretted formation of the panel, and had hoped to work out the dispute through consultations, the WTO reported. The DSB also referred to arbitration and established a compliance panel for the European Union’s complaint that the U.S. has not implemented the WTO’s adverse ruling against subsidies provided to Boeing.
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U.S.-China autos panel authorized. The DSB authorized formation of a panel to decide the dispute in China — Antidumping and Countervailing Duties on Certain Automobiles from the United States (DS440). In requesting formation of the panel, the U.S. said China’s dumping and subsidy determinations in the autos investigations appear to involve “profound procedural and substantive deficiencies”, and in conducting these investigations, China “appears to have breached a number of its obligations,” the WTO said. China responded that the imports at issue were dumped and subsidized, and that it acted consistently with WTO rules. Countries that requested to act as third-parties in the case included the EU, Japan, Turkey, Korea, Saudi Arabia, India, Colombia and Oman.
DSB takes action in Boeing subsidies case. The DSB also took action in the dispute United States — Measures Affecting Trade in Large Civil Aircraft (DS353), in which the EU complained that the U.S. still hasn’t implemented the March 2012 ruling against some U.S. subsidies to Boeing. Following the U.S. submission of its implementation letter, the EU said it would request $12 million in countermeasures because the U.S. didn’t comply with the ruling. The DSB referred the dispute for arbitration, and established a compliance panel.
(See ITT’s Online Archives 12031306 for summary of the March WTO ruling against U.S. aircraft subsidies, and 12092723 for summary of the EU’s announcement that it intends to impose countermeasures.)